Kuala Lumpur:Malaysia is expected to see softer economic growth in the months ahead after the Leading Index (LI), which gauges economic direction, showed a slower year-on-year growth of 0.7 per cent in January this year compared to 1.9 per cent in December 2019, said the Department of Statistics Malaysia.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the index for reference month January 2020 had not taken into account the internal shocks that had a direct impact on the economy, notably the Covid-19 pandemic plaguing Malaysia since Jan 23.

“These pandemic effects are expected to be reflected in the index of subsequent month,” he said in a statement on Monday.

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On a month-on-month basis, he said the LI increased 0.1 per cent in January 2020 from a negative 0.3 per cent in the previous month.